London midday: FTSE touch weaker as ex-divs weigh; UK GDP in focus

(Sharecast News) - London stocks were still a touch weaker by midday on Thursday, with a number of companies trading ex-dividend, as investors mulled the latest UK GDP figures.

The FTSE 100 was down 0.1% at 9,159.58 .

Russ Mould, investment director at AJ Bell, said: "The FTSE 100 dipped from yesterday's record close on Thursday morning after gains on Wall Street and mixed trading in Asia overnight.

"Increased hopes for interest rate cuts from the Federal Reserve helped US indices to advance on Wednesday, though some of that momentum had evaporated by the time Asian markets opened.

"Sterling enjoyed a modest uptick as UK GDP beat expectations. Recent strength in the pound against the dollar is not particularly helpful for the FTSE 100 given it negatively affects the relative value of its dominant overseas earnings.

"The index was also held back as several big names traded without the rights to their most recently declared dividends."

Data released earlier by the Office for National Statistics showed that economic growth slowed less than expected in the second quarter.

The economy grew 0.3% following 0.7% growth in the first quarter, and versus expectations for a 0.1% expansion.

The ONS said growth was driven by increases of 0.4% in services and 1.2% in construction, while growth the production sector fell 0.3%.

In the month of June, the economy grew 0.4%.

Liz McKeown, director of economic statistics at the ONS, said: "Growth slowed in the second quarter after a strong start to the year.

"The economy was weak across April and May, with some activity having been brought forward to February and March ahead of stamp duty and tariff changes, but then recovered strongly in June.

"Across the second quarter as a whole growth was led by services, with computer programming, health and vehicle leasing growing.

"Construction also increased while production fell back slightly.

"Growth for the quarter was also boosted by updated source data for April, which while still showing a contraction, was better than initially estimated.

"Services also drove growth in June with scientific R&D, engineering and car sales all having a strong month.

"Within production, which recovered, manufacture of electronics performed especially well."

Danni Hewson, head of financial analysis at AJ Bell, said: "Whether you are a cup half empty or a cup half full type of person will determine how you view this latest set of UK growth figures.

"The economy has continued its positive trajectory and grew by more than had been expected in the three months to June, despite a challenging backdrop - not least from the government's own actions on business taxation. But that growth has slowed significantly from the 0.7% charge at the start of the year and even the most charitable can't consider the pace as anything other than sluggish, especially when you factor in population growth.

"For Rachel Reeves today's figures will provide a welcome boost as she draws up her Budget plans, with promises that she is looking for ways to go further and faster when it comes to stimulating the economy. The government put growth at the top of its agenda, so expansion in the construction sector will provide a glimmer of hope that at least some of its plans are beginning to bear fruit."

In equity markets, Rio Tinto, GSK, Hikma, BP, Fresnillo and Unilever all fell as they traded without entitlement to the dividend.

Diploma slumped as it said that chief financial officer Chris Davies has resigned with immediate effect. "This decision follows a recent company event where, through a lapse in judgement, his personal behaviour did not meet the high standards required of the group's leadership team," the company said.

Rank Group fell despite posting a rise in full-year profit, with both revenue growth and profit ahead of the company's expectations.

Real estate advisor Savills reversed earlier gains as it reported a rise in first-half profit and revenue, pointing to a strong first-quarter performance but a more subdued transactional market in the second quarter.

On the upside, Admiral was the top performer on the FTSE 100 as it posted a 69% increase in first-half pre-tax profit before continuing operations to a record �521m.

Aviva gained after it said half-year operating profit surged 22% as it hiked prices and grew premium income.

Centrica advanced after it and Energy Capital Partners bought National Grid's Grain LNG business for �1.66bn. National Grid also rose.

Market Movers

FTSE 100 (UKX) 9,159.58 -0.06%

FTSE 250 (MCX) 21,828.56 -0.11%

techMARK (TASX) 5,278.06 0.27%

FTSE 100 - Risers

Admiral Group (ADM) 3,536.00p 4.99%

Aviva (AV.) 680.40p 3.25%

Centrica (CNA) 166.40p 2.65%

Babcock International Group (BAB) 991.00p 2.48%

Smurfit Westrock (DI) (SWR) 3,343.00p 2.39%

BAE Systems (BA.) 1,772.00p 2.34%

NATWEST GROUP (NWG) 553.20p 2.07%

Rolls-Royce Holdings (RR.) 1,103.50p 2.03%

BT Group (BT.A) 216.50p 1.41%

Flutter Entertainment (DI) (FLTR) 21,650.00p 1.41%

FTSE 100 - Fallers

Rio Tinto (RIO) 4,480.50p -4.03%

Diploma (DPLM) 5,255.00p -3.49%

Beazley (BEZ) 780.50p -2.44%

GSK (GSK) 1,404.50p -2.13%

BP (BP.) 411.65p -1.60%

Shell (SHEL) 2,636.00p -1.25%

Unilever (ULVR) 4,513.00p -1.25%

Halma (HLMA) 3,254.00p -0.97%

IMI (IMI) 2,262.00p -0.96%

Convatec Group (CTEC) 229.40p -0.95%

FTSE 250 - Risers

Ocado Group (OCDO) 368.40p 4.13%

Aston Martin Lagonda Global Holdings (AML) 76.00p 3.83%

W.A.G Payment Solutions (WPS) 86.00p 3.37%

TBC Bank Group (TBCG) 4,825.00p 2.55%

NB Private Equity Partners Ltd. (NBPE) 1,460.00p 2.10%

Pantheon Infrastructure (PINT) 105.00p 1.94%

Senior (SNR) 200.50p 1.78%

VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 488.00p 1.67%

Crest Nicholson Holdings (CRST) 182.50p 1.61%

Future (FUTR) 751.00p 1.56%

FTSE 250 - Fallers

Savills (SVS) 929.00p -4.72%

Harbour Energy (HBR) 227.20p -4.54%

The Renewables Infrastructure Group Limited (TRIG) 77.60p -4.08%

Rank Group (RNK) 140.00p -3.98%

Abrdn (ABDN) 194.90p -3.71%

Investec (INVP) 535.00p -3.52%

Bridgepoint Group (Reg S) (BPT) 333.40p -2.69%

Assura (AGR) 48.12p -2.59%

Spire Healthcare Group (SPI) 223.00p -2.41%

NextEnergy Solar Fund Limited Red (NESF) 75.60p -2.33%